Calculate Total Cost Per Unit

Question

Zeneth TV has received an order for 2,000 specially designed DVD players. The following standard costs for this product are:

Direct materials: Part 381                  $25 per DVD player

                         Part 412                   $45 per DVD player

Direct labor 2.5 hours per DVD player at $16 per hour

Manufacturing overhead $40 per direct labor hour

The company adds a 16% markup on special orders to arrive at a selling price. The bid price for this order totals:

Summary

The question belongs to Finance and it discusses about calculation of total cost per unit and bid price per unit for a manufacturing company.

Total Word Count 51